Advivo Accountants and Business Advisors Brisbane share 5 tips and tricks to help prevent cash flow shortages in the new year.

The top reason small businesses fail is obvious but all-too-common: they run out of money. As we know a business cannot operate very long when cash outflow exceeds cash inflow and therefore it’s crucial to budget your finances and understand your various revenue streams. To help, Advivo has put together a list of 5 tips and tricks to help prevent cash flow shortages in the new year and take your business to the next level.

1. Improving Productivity with Automation

Automating accounts receivable and payroll are integral to make things easier for business owners. The accounting software you use should have options for you to set this up. Automating these parts of your business ensure that your invoices will be paid quickly and that staff will be paid on time and correctly without having to worry about human error.

2. Educate Yourself and Your Clients

It’s important for all business owners to understand where their cash is coming from and where it is spent. Ensure that your clients are aware of how long it will take your business to complete a task and your payment terms. Make sure that you are clear and concise in order to avoid miscommunication.

3. Strategic Tax Planning

Managing your own tax is a complicated process without the help of an accountant. If you make a mistake you may receive an unwanted bill from the ATO. Advivo will diligently plan your tax obligations so there are no surprises throughout the year and will ensure you are well-positioned to make the most out of all tax opportunities. If needed, we can also negotiate payment arrangements with the ATO on your behalf to help pay off your debt in a manageable manner.

4. Create a Cash Flow Plan

If you are a small business owner, having a cash flow plan is one of the key components of making sure you stay afloat during quiet seasons. A key component of our financial management and modelling services is our Future Fitness 3-Way Report™. This report is a powerful and flexible 3-way budgeting, forecasting and business modelling tool we use to help your business thrive by looking at Cash Flow, Profit & Loss and Balance Sheet.

5. Contact the Advivo Team

We have a talented team of accountants, business advisors, and accounting consultants who will listen to you and take a hands-on approach to manage your business and individual financial needs. If you’re looking for a new accountant, especially one based in Brisbane, look no further. Call us on 07 3226 1800 or message us on our Contact page.